TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 171

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Sir L

tonson

HONG KONG DEFENCE CONTRIBUTION

1. In FCO telegram No 592 we made it clear to the Governor

that Ministers collectively were awaiting a report from him

on the reactions of his Executive Council to the DCPC proposals

conveyed to him in FCO telegram No 553.

2.

In his telegram No 579 the Governor has now given us an

outline of the form in which he intends to put those proposals

to his Executive Council. He also suggests, in paragraph 3

of his telegram, a "course of action" which, unless he hears

from us to the contrary, he will assume correctly interprets

the instructions sent to him.

3.

It is not clear however exactly what the Governor will do.

His suggestions appear to take the form of alternatives. 4. It is important that Ministers' wishes in this matter

should be made quite clear to the Governor. In paragraph 8 of FCO telegram No 592 we said that Ministers awaited his report on the reactions of his Executive Council to the DOPC

We also told him that proposals previously conveyed to him. he should not at this stage say anything about the use of the

reserved powers. I think that we should now make it quite

clear to the Governor that he should do no more than put the

DOPC terms to his Executive Council and report their reaction letting us have at the same time his own assessment of the

situation in the light of that reaction.

5.

Even if Executive Council respond favourably Finance

Committee may not. So long as there is any possibility of

having to use the reserved powers, it will be important for Ministers to be kept in touch with each step in the negotiations.

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